Direct Marketing of Wheat in Ontario

[bbrindle]

I've posted a brief article on "Ontario's Direct Marketing Option for Wheat" at the Specialist's Corner. Should western farmers have similar options?

[parsley]

As a producer, I would really like to see farmers have all kinds of marketing options. The first thing we need to find out is what is being offerred at the present time.

Is the "direct marketing" option already available to the big feed mills in the designated area Brenda? Do the feed mills apply for the export license and have one granted to them without doing the buyback?

You say that in the west that the "CWB pools all wheat returns into one pool" and I find that although the CWB say they do this, in actuality they do not. As far as I know, there is a whole lot of wheat and barley exported in feed that is not pooled at all. Is this true or not. It seems I cannot get an answer from Moderators Tom or Charlie at all. I would hope that they could answer the questions that i have asked repeatedly. Are they on holidays?

Parsley

[bbrindle]

As far as I know, Ontario farmers, pedigreed seed growers and feedmills can get an export license through the CWB without a buy-back, virtually on request. The CWB requires farmers marketing their own grain to go through what appears to me to be a cumbersome and arbitrary (with respect to the price values) set of hoops. If I am wrong about this I will leave it to someone from the CWB to correct me.

[AppMan]

I am wondering what the domestic consumption of wheat in Canada is. I am guessing the 150,000 MT will go a long way to filling the domestic consumption. Puts we poor fellows in the designated region at yet another disadvantage even in our own country markets. Many would love to ship to the Eastern mills directly and get the domestic price without WCB buybacks etc.

What about the organic people, this would suit their needs perfectly. It appears as though the Ontario people have their heads screwed on properly and are moving in the right direction and well ahead of the designated region under CWB single desk mentallity.

The Austrialians are well ahead as well. Anything leaving the country in a bag or container is exempt. They understand that single desk bulk commodity marketing cannot fill these markets, but small entrepreneurs certainly can and should not be impeded but rather encouraged.

I have said this before and will say it again, how long can we live under this single desk mentallity and not go broke. I am not just referring to farmers but the complete western wheat and barley industry.

[TOM4CWB]

Direct Marketing to end users is great, but the grain co.s can add value by facilitating consistant supply of the product while providing interm financing to insure a farmer's cash flow meets requirements, when these needs are to be met.

Competition that is based on the same level playing field will serve all farmers to the best advantage as a whole.

The CWB stops this competion today, and this is why it is destroying itself!

The Buy-back system is at fault for causing this failure!

[eatmorewheat]

I am an Ontario flour miller who is already benefiting from OFFBOARD wheat sales in Ontario.

I now have a choice[ as does the producer] as to whom I buy my local wheat from. Better pricing and reliability of supply.Producer has better cash flow and pricing.

The exemption level will hopefully climb this year from it's current 150 000 tonnes.

OFFBOARD wheat should also be an option for western wheat farmers NOW!

Check our website for our cash prices delivered mill at www.hayhoe.com

Regards,

Mark Hayhoe
President
Hayhoe Mills Ltd.

[bbrindle]

Thank you very much for contributing to this discussion! I wonder whether the quality is better, when you get direct producer deliveries? I know feedmills and feedlots have told me that is the case because they aren't getting a blended product that has been mixed in the handling system.

[bbrindle]

Someone asked earlier what the Canadian domestic consumption of wheat is. According to Ag Can about 3 mmt (million metric tonnes) of "all wheat" is used for food and industrial use. The CWB annual report said they sold 2.5 mmt to Canada in 1998-99 (2.2 of wheat and about .3 of durum).